Council Votes Against Affordable Housing Proposal, Sets Stage for Tribunal Appeal

In a surprising turn of events, the council voted twice against the Cold Creek neighbourhood proposal by Port Picton Homes, leaving developer David Cleave with no choice but to appeal to the Ontario Land Tribunal (OLT). The denial contradicts recommendations from county planners, who supported the project, which includes plans for 904 energy-efficient homes priced between $375,000 and $450,000.

Cleave expressed disbelief at the council’s decision, emphasizing that it would not only delay the project by at least a year but also incur significant costs, potentially reaching $250,000, as the county will need to hire new planners and redo extensive studies for the appeal. Despite Cleave’s efforts to amend the proposal to address environmental concerns, including enhanced wetland protection and trail connectivity, council members opposing the development did not provide substantive reasons for their votes.

Critics within the council highlighted the land’s agricultural significance and the potential impact on the Cold Creek Watershed as their main concerns. However, the property has been zoned for town development since the 1970s. Mayor Ferguson and other supporters lamented the lost opportunity for affordable housing in the community, especially as many residents struggle to find suitable living conditions.

As the project moves to the OLT, the council’s decision raises questions about its approach to affordable housing and fiscal responsibility, especially given their previous votes on other financial matters. The community awaits the outcome, hopeful for a resolution that prioritizes housing accessibility.


Implications of Recent Tax Ruling for Short-Term Rental Owners

A recent court ruling reported in the Toronto Star has significant implications for short-term rental operators in Canada, clarifying that the Canada Revenue Agency (CRA) can impose taxes on properties consistently rented out through platforms like Airbnb and VRBO. Real estate lawyer John Zinati warns that homeowners could face hefty taxes upon selling their properties—potentially tens of thousands of dollars.

The case involved an Ottawa condo owner who switched from long-term to short-term rentals and later sold his unit without paying HST. However, the CRA determined that the property had transitioned to commercial use, making it taxable upon sale. The court upheld this assessment, emphasizing that properties leased consistently for short-term periods resemble commercial operations, akin to hotels.

Zinati notes that sporadic weekend rentals won’t trigger this tax, but consistent short-term leasing—like the 14 months in this case—will. This ruling serves as an important reminder for homeowners to understand the tax implications of their rental practices, particularly as the CRA increasingly focuses on real estate taxation.

Experts like Dale Barrett advise property owners to be aware of a 90% rental threshold, which could dictate tax obligations upon sale. This threshold remains somewhat undefined, but Barrett emphasizes the need for homeowners to consult legal experts before engaging in short-term rentals or selling their properties.


Using Format